Recently, the company released an interim report, 2017H1. The company achieved operating income of 350.97 million yuan, an increase of 82.89% over the previous year; net profit attributable to owners of the parent company was 94.61 million yuan, an increase of 108.51% over the previous year, and net profit after deducting net profit of 5082 million yuan, an increase of 86.66% over the previous year. Earnings per share were 0.10 yuan, up 100% year over year. Comment 2017H1 achieved operating income of 350.97 million yuan, a year-on-year increase of 82.89% due to the increase in IP derivatives revenue and the inclusion of Zhenqu Network in the scope of the merger. In terms of three fees, sales expenses were 18.89 million yuan, a year-on-year decrease of 3.82%; management expenses were 51.84 million yuan, an increase of 31.20% over the same period last year, mainly due to an increase in employee remuneration; and financial expenses were 3.34 million yuan, an increase of 7379.54% over the same period last year, mainly due to exchange losses and increased interest expenses. Expand the IP derivatives distribution platform and enhance the monetization capabilities of IP derivatives. 2017H1, the company's IP derivatives revenue was 18066 million yuan, an increase of 46.45% over the previous year. It is mainly due to the company's vigorous expansion of IP derivatives distribution platforms on the basis of having many high-quality IPs. The company set up a vertical e-commerce platform, Youwowo, and acquired comic trade to create a comprehensive sales channel for IP derivatives such as anime apparel and cosplay apparel; the company has an overseas online and offline sales platform through the acquisition of Dutch channel company ScheepersB.V.; the company has an overseas online and offline sales platform; the company will bring domestic consumers the latest toys and anime apparel pop experiences abroad through investment of 1001 nights; the company will operate the original online+offline derivatives The platform has been improved and supplemented, covering more than 800 offline stores nationwide. Numerous IP derivatives distribution platforms will further enhance the monetization capabilities of the company's IP derivatives. Relying on many high-quality IPs, games and animation products are constantly being produced. 2017H1, the company's pan-entertainment business revenue, such as games and animation, was 132.49 million yuan, an increase of 285.25% over the previous year, mainly due to the merger of Zhenqu Network and the development of its own original IP. The company currently has excellent web games and mobile games such as “Little Brave Village”, “Three Kingdoms of Solitaire”, “Contract of Light”, “A Big Man”, “Land of War”, “Planet Expedition”, etc., as well as excellent original animation works such as “The Legend of Morin”, “Jazz Rabbit”, “Little Tantan”, “Little Mobster”, “Star Academy I”, and “Star Academy II”. Among them, “Star Academy” and “Demon Slayer” are the original boutique IPs that the company focuses on creating. In addition, the company has deepened cooperation with Disney, Marvel, Nintendo and other companies to jointly develop IPs such as “Star Wars,” “Frozen,” “Warcraft,” “Super Mario,” and the Marvel Heroes series. At the same time, it has reached a formal cooperation with Reading Book Group, and has obtained licenses for the genuine COS peripheral of the top domestic comic IP “Full Time Master”, with many high-quality IPs. The investment advice company actively expands the distribution channels of IP derivatives through continuous exploration of originality and introduction of high-quality IP. The company's pan-entertainment industry chain will be further optimized to help drive overall performance growth. We expect the company's operating income in 2017, 2018, and 2019 to be $1,142 million, $1,631 million, and $2,094 million respectively, and net profit attributable to the parent company of $339 million, $456 million, and $552 million, and earnings per share of 0.37 yuan, 0.50 yuan, and 0.61 yuan, corresponding to PE of 39.00, 28.97, and 23.93, respectively. The risk suggests that the degree of integration in the pan-entertainment industry chain falls short of expectations.